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- 20 Marks
Question
Ato commenced business several years ago as a sole trader. Ato pays all the sales receipts into the business bank account. He has prepared the following bank account summary for the year ended 31st December 2015.
Bank account summary for the year ended 31st December 2015
| GHȼ | GHȼ | |
|---|---|---|
| Cash sales | 16,420 | |
| Receipt from customers | 200,400 | |
| Rent received | 14,500 | |
| Balance b/d | 4,820 | |
| General expenses | 20,000 | |
| Wages | 30,180 | |
| Payments to suppliers | 120,320 | |
| Motor vehicles | 16,000 | |
| Equipment | 15,000 | |
| Drawings | 24,520 | |
| Balance c/f | 480 | |
| 231,320 | 231,320 |
The following information is also available: i) The assets and liabilities of the business at the beginning and end of the year were:
| 1st January 2015 (GHȼ) | 31st December 2015 (GHȼ) | |
|---|---|---|
| Trade receivables | 20,100 | 25,400 |
| Trade payables | 16,200 | 18,320 |
| Inventory at cost | 21,000 | 16,200 |
| General expenses prepaid | 1,000 | 800 |
| Rent received prepaid | 600 | – |
| Rent received owing | – | 1,100 |
| Wages owing | 2,100 | 400 |
| Premises | 80,000 | 80,000 |
| Equipment | 25,200 | 23,800 |
| Motor vehicles | 62,500 | 66,100 |
ii) Discounts received from suppliers amounted to GHȼ2,500 for the year ended 31st December 2015. iii) Ato allowed his customers discounts of GHȼ3,000 during the year ended 31st December 2015. iv) An allowance of receivables of 3% of receivables is to be created. v) Ato has taken goods at a cost price of GHȼ2,800 for his personal use.
Required: a) Prepare the Statement of Profit or Loss for Ato for the year ended 31st December 2015. (11 marks)
b) Prepare the Statement of Financial Position for Ato as at 31 December 2015. (9 marks)
Answer
a) Ato Statement of Profit or Loss for the year ended 31 December 2015
b) Ato Statement of Financial Position as at 31 December 2015
- Topic: Preparation of accounts from incomplete records
- Series: NOV 2016
- Uploader: Kwame Aikins